USOIL - A LONGTERM OUTLOOK (PART II)

Also, if you have short position, you might wanna take partial or full profit. Check out this post also as I have shorted and already taken full profit yesterday. Here is the link

So this is a predicted correction and oil will go much higher from the support area around $38-$42/barrel to $60/barrel, even $80/barrel. I think point B, the last low at $26.03 is the medium term low because:
- Downward trend line was broken.
- Point C, the last high at $51.64 is higher then Point A at $50.60

Therefore, if this correction as predicted and oil will find support around this yellow area $38-$42 and bounce back to $50, it could signal a potential inverted head and shoulders pattern which will lead oil to $60 or even $80.
A buy is recommend at this level due to several reasons:
- Oil has reached our support area $38-$42
- 38.2% Fibo Retrace of the last impulse phase is around $41.85
- 50% Fibo Retrace is at $38.75